econ exam 2(Exam Question 2024)
price ceiling - correct answers✅A legal maximum on
the price at which a good can be sold
price floor - correct answers✅A legal minimum on the
price at which a good can be sold
tax incidence - correct answers✅the manner in which
the burden of a tax is shared among participants in a
market
deadweight loss - correct answers✅the fall in total
surplus that results from a market distortion, such as a
tax
binding price ceiling - correct answers✅set below
equilibrium price
binding floor price - correct answers✅set above the
equilibrium price
The government prohibits gas stations from selling
gasoline for more than $4.50 per gallon. - correct
answers✅price ceiling, non-binding
, econ exam 2(Exam Question 2024)
There are many teenagers who would like to work at gas
stations, but they are not hired due to minimum-wage
laws. - correct answers✅price floor, binding
The government has instituted a legal minimum price of
$4.50 per gallon for gasoline. - correct answers✅price
floor, binding
pressure on price - correct answers✅upward: shortage,
less quantity supplied and more quantity demanded
downward: surplus, more quantity supplied and less
quantity demanded
True or False: A price ceiling below $25 per box is a
binding price ceiling in this market. - correct
answers✅true
Because it takes many years before newly planted orange
trees bear fruit, the supply curve in the short run is
almost vertical. In the long run, farmers can decide
whether to plant oranges on their land, to plant
something else, or to sell their land altogether. Therefore,
the long-run supply of oranges is much more price
sensitive than the short-run supply of oranges. Assuming
that the long-run demand for oranges is the same as the
short-run demand, you would expect a binding price
ceiling to result in a ____ that is ___ in the long run than in
the short run. - correct answers✅shortage, larger
price ceiling - correct answers✅A legal maximum on
the price at which a good can be sold
price floor - correct answers✅A legal minimum on the
price at which a good can be sold
tax incidence - correct answers✅the manner in which
the burden of a tax is shared among participants in a
market
deadweight loss - correct answers✅the fall in total
surplus that results from a market distortion, such as a
tax
binding price ceiling - correct answers✅set below
equilibrium price
binding floor price - correct answers✅set above the
equilibrium price
The government prohibits gas stations from selling
gasoline for more than $4.50 per gallon. - correct
answers✅price ceiling, non-binding
, econ exam 2(Exam Question 2024)
There are many teenagers who would like to work at gas
stations, but they are not hired due to minimum-wage
laws. - correct answers✅price floor, binding
The government has instituted a legal minimum price of
$4.50 per gallon for gasoline. - correct answers✅price
floor, binding
pressure on price - correct answers✅upward: shortage,
less quantity supplied and more quantity demanded
downward: surplus, more quantity supplied and less
quantity demanded
True or False: A price ceiling below $25 per box is a
binding price ceiling in this market. - correct
answers✅true
Because it takes many years before newly planted orange
trees bear fruit, the supply curve in the short run is
almost vertical. In the long run, farmers can decide
whether to plant oranges on their land, to plant
something else, or to sell their land altogether. Therefore,
the long-run supply of oranges is much more price
sensitive than the short-run supply of oranges. Assuming
that the long-run demand for oranges is the same as the
short-run demand, you would expect a binding price
ceiling to result in a ____ that is ___ in the long run than in
the short run. - correct answers✅shortage, larger
